The falling stock prices of Facebook, Zynga and Groupon are causing some investors to pull back from
Web start-ups, the WSJ reports..
Jeff Tangney recently experienced the change firsthand. Mr.
Tangney, CEO of Doximity Inc., a social network for doctors, said venture
capitalists clamored to invest in his San Mateo, Calif., start-up earlier this
year. At the time, the investors "encouraged focus on user engagement, not
revenue," he said.
But when Mr. Tangney hit the fundraising trail last month
with the goal of amassing $20 million, he got a different reception from
investors. By then, Facebook had held its botched initial public offering and
its share price—along with those of Zynga's and Groupon's—was quickly dropping. In the aftermath, investor questions turned
"a complete 180 degrees" and they wanted to know how Doximity would
make money, said the entrepreneur….
Find out more at http://online.wsj.com/article/SB10000872396390443720204578004953091338258.html?mod=WSJ_business_whatsNews
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